New mortgage lending reached its highest level in the UK since 2008, as there has been an increase in the amount of lending to first-time buyers, according to latest statistics from the Bank of England.

Much of the lending saw an increase between April-June, 2019, as more home buyers successfully completed their mortgage applications through bankers, advisers, and agents. Besides, mortgage lending activity between April-June of 2018 was significantly higher when compared with the previous quarter. The value of new commitments was £73.2billion, an increase of 19.8 per cent from the first quarter (January-March) of 2018.

These statistics indicate stability in the housing market, as more confident buyers are increasingly taking mortgages. In fact, the proportion of high loan-to-income (LTI) lending – for loans above four times the value of annual income for a single buyer or above three times the value of annual income for joint buyers - has increased this quarter. The highest loan-to-value (LTV) categories have also seen an increase in new lending.

The data from the Bank of England corroborates the findings of the National Association of Estate Agents (NAEA). It was found out that the sales to first-time buyers had reached an eight-month high in July this year. The market will continue to experience stability as a greater number of house buyers is opting for mortgages.